The Central Bank of Curacao and Sint Maarten has issued the report Economic Developments 2017 and Outlook 2018 for Curacao and Sint Maarten.
Preliminary data suggest that real GDP contracted in the monetary union of Curaçao and Sint Maarten in 2017 as activities dropped in both economies. Curaçao recorded a real economic contraction of 1.4% in 2017, following a decline of 1.0% in 2016. Meanwhile, in the aftermath of Hurricane Irma, real GDP shrank in Sint Maarten by 4.0% in 2017 after a contraction of 0.1% in 2016. Furthermore, inflationary pressures increased in both countries.
The economic contraction in Curaçao was the result of a decline in net foreign demand, moderated by an increase in domestic demand. The negative contribution of net foreign demand was caused by a decline in exports combined with increased imports.
• Domestic demand rose because of higher private and public spending.
• The increase in private spending was supported by higher investments while private consumption dropped.
• The increased inflationary pressures and worsened labor market situation were the main causes of the lower consumer spending.
Meanwhile, public spending increased as both government investment and consumption rose. A sectoral analysis reveals that real value added dropped in the wholesale & retail trade, restaurants & hotels, transport, storage & communication, and financial intermediation sectors. By contrast, real output expanded in the construction and utilities sectors.
Up till the second quarter of 2017, Sint Maarten’s economy was growing, supported by the manufacturing, construction, restaurants & hotels, transport, storage & communication, and real estate, renting & business activities sectors. However, in September 2017, Hurricane Irma caused severe damage to the country destroying homes, infrastructure and commercial and public property.
• Hence, Sint Maarten’s production capacity was severerly affected, causing a real GDP contraction for the entire year.
• On the expenditure side, Sint Maarten’s real GDP contraction was the result of a decline in net foreign demand due to a drop in exports, moderated by lower imports.
• By contrast, domestic demand increased on the account of increased public and private demand.
• The increase in private demand was the result of more investments, mitigated by a decline in consumption.
• Public demand grew supported by increased government consumption, while investments dropped.
More detailed information is available in the report under this button:
Number of pages 16 • Language English • Country Curacao / Sint Maarten
Number of pages 17 • Language Dutch• Country Curacao / Sint Maarten
Tags: economy, economie, economie curacao, report, rapport, public finance and tax, tax, belasting, compliance, centrale bank van curacao en sint maarten, central bank of curacao and st. maarten, central bank, government, government sint maarten, financien, finance, financien curacao, economische ontwikkeling van curacao, economic affairs sint maarten, finance sint maarten, budget, begroting, begroting curacao, svb, sociale verzekeringsbank, szv, social security bank, banco di seguro social, sociale verzekeringen.